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# Claude Code shows a Settings Warning and MCP servers stop loading

> Claude Code warns "allowedMcpServers[]: Invalid entry was ignored: failed validation" on launch, and MCP servers may stop loading. This is a fixed defect in how the MCP allowlist was written.

<img src="https://mintcdn.com/agenshield/ZSVv7ExfJBS5KzGd/images/page-heroes/troubleshoot-claude-code-settings-warning.png?fit=max&auto=format&n=ZSVv7ExfJBS5KzGd&q=85&s=fb70f8e7c8f6cf50f9a015e811472e44" alt="Settings Warning cover — loud label, quiet reality." noZoom width="1920" height="880" data-path="images/page-heroes/troubleshoot-claude-code-settings-warning.png" />

## What you are seeing

When launching Claude Code, a warning appears:

```
Settings Warning
/Library/Application Support/ClaudeCode/managed-settings.json
└ allowedMcpServers[]: Invalid entry was ignored: failed validation
```

If your organization enabled MCP restriction, MCP servers — including approved
ones — may also fail to load.

## What is actually happening

When your organization turns on MCP restriction, AgenShield writes an allowlist
of approved MCP servers into Claude Code's managed settings file. In affected
versions, the entries were written in a format Claude Code does not accept, so
Claude Code ignored **every** entry. An ignored allowlist behaves as an empty
allowlist — with restriction on, that blocks **all** MCP servers, not just
unapproved ones.

The warning is Claude Code reporting the rejected entries; the rest of the file
still works.

**Affected versions:** releases before `2026.8.2`. **Fixed in:** `2026.8.2` and
later — updating writes the allowlist in the format Claude Code accepts on the
next policy sync.

## How to recover now

1. Ask your administrator to briefly turn MCP restriction off and back on in the
   Frontegg Portal (this recompiles the policy), or simply update AgenShield
   to the latest version — the corrected format is applied automatically on the
   next policy sync.

2. If the warning persists after the policy has updated, remove the stale file
   and let AgenShield rewrite it:

   ```bash theme={"theme":{"light":"snazzy-light","dark":"dark-plus"}}
   sudo rm '/Library/Application Support/ClaudeCode/managed-settings.json'
   ```

3. Relaunch Claude Code. The warning is gone and approved MCP servers load
   normally.

## The fix

AgenShield now writes MCP allowlist and denylist entries in the exact format
Claude Code validates, and automatically repairs a settings file that still
carries the old format. Update AgenShield to the latest version; no
configuration change is needed.

## When to escalate

If the warning persists after updating AgenShield and removing the stale file,
collect a diagnostics bundle (see
[Collecting diagnostics](../troubleshoot/collecting-diagnostics.mdx)) and contact
support with the warning text.